Bulgaria Labor Law and Employment Policy Overview

Employment Law Overview

• Key Laws and Regulations:
  • Labor Code
  • Social Security Act
  • Tax Code
• Legal Characteristics:
  • Protects employee rights and benefits
  • Promotes employment and economic growth
  • Ensures sustainability of social security system

Employment Contract Requirements

• Contract Types:
  • Indefinite contracts
  • Fixed-term contracts
• Contractual Provisions:
  • Must include job description, remuneration, working hours, vacation, etc.
• Language and Currency:
  • Contracts must be written in Bulgarian
  • Currency is Bulgarian Lev (BGN)

Working Time Regulations

• Standard Working Hours: 40 hours per week
• Rest Days and Breaks:
  • Minimum of 24 hours of rest per week
  • Minimum of 12 hours of rest per day

Vacation Policy

• Annual Leave: Minimum of 20 days per year
• Public Holidays: 12 statutory public holidays
• Special Leaves:
  • Sick leave: Paid by employer for first 3 days, then by Social Security Fund
  • Maternity leave: 410 days, including 45 days before childbirth
  • Paternity leave: 15 days
  • Parental leave: Up to 2 years of age of child

Employee Dismissal and Contract Termination

• Notice Period:
  • Indefinite contracts: 30 days
  • Fixed-term contracts: 3 months before contract expiry
• Severance Pay:
  • Dismissal without just cause: 1-4 months' salary
  • Economic redundancy: 1 month's salary
• Unfair Dismissal Protection: Employees have the right to appeal unfair dismissals

Tax Law

• Personal Income Tax:

  • Salary Range	Tax Rate
    0 - 30,000	0%
    30,000 - 45,000	10%

• Social Security Contributions:

  • Employer: 17.3%
  • Employee: 13.72% - 14.82%

Health Insurance

• Insurance Policy: All employees must participate in the National Health Insurance Fund (NHIF)
• Coverage: Basic healthcare services

Compensation and Benefits

• Minimum Wage: BGN 780 per month
• Salary Structure: Typically includes base salary, bonuses, and allowances

Work Permits and Visas

• Permit Requirement: Non-EU/EEA citizens require work permits
• Application Process:
  • Employer applies to the Bulgarian Employment Agency
  • Applicant provides passport, educational credentials, and employment contract

Confidentiality and Non-Compete Clauses

• Enforceability: Confidentiality and non-compete clauses are enforceable in Bulgaria
• Common Provisions:
  • Confidentiality clauses: Prohibit disclosure of employer's confidential information
  • Non-compete clauses: Restrict employee from working for competitors after leaving employment

Training and Development

• Legal Requirements: Employers must provide safety training and skills development training to employees
• Government Support: Government provides training programs and funding

Workplace Diversity and Inclusion

• Legal Requirements: Prohibits discrimination based on race, gender, religion, or other protected characteristics
• Enforcement: Commission for Protection against Discrimination enforces anti-discrimination laws

Remote Work Policy

• Legal Framework: Remote work is legally supported in Bulgaria
• Tax and Insurance Implications: Tax and social security implications of remote work vary depending on specific circumstances

Authoritative Website Addresses

• Bulgarian Ministry of Labor and Social Policy: https://www.mlsp.government.bg/